While London's outcomes in March were better than some, its April and May RevPAR declines fall into a similar order of magnitude – with occupancy shortfalls similar to New York and ADR declines similar to San Francisco, resulting in a comparable April 2020 RevPAR decline of 94%.
One concerning factor is that London's steep ADR decline may indicate more discounting than merely attributable to share shifts from luxury to midscale and economy chain scale properties.
Over the coming months, by teaming up with the data science team at LodgIQ, Phocuswright is evaluating a broad swathe of hotel-related and other data across a variety of key metropolitan
areas.
Our key objectives are to model the:
- Level of disruption
- Duration of disruption
- Shape of the recovery curve
The goal is to understand the similarities and differences in hotel market dynamics between destinations.
This is especially relevant, as some markets may have yet to peak in terms of the level of infections, while others are seeing active coronavirus case counts decline.
The fourth COVID-19 Hotel Forecast report, written by Robert Cole, covers the U.K. capital and major tourist hub of London. It is available for free below (download here) or via the Phocuswright website.